Monday, Credit Suisse initiated coverage of Public Storage (PSA) stock with an Outperform rating and a price target of $91.
Analyst Rosivach believes PSA is a "best in class" REIT, given its industry-leading position in the storage space, its strong balance sheet and growing cash balance. The analyst expects storage revenues to react quickly to favorable economic news, and he believes PSA will be a major beneficiary as the storage market shifts its focus toward consolidation from development.
The analyst would not be surprised to see PSA go on the offense with acquisitions. However, opportunities remain scarce at this time (whether at home or abroad) with the bid-ask spread difficult to close. If PSA is unable to deploy its $671 million in cash toward an acquisition, the analyst believes the company may start to repurchase preferred shares, which could be 23% accretive over the next 5 years.
The analyst likes to think of PSA as an apartment stock, with a similar sensitivity to employment. Currently, PSA trades at a 5% FFO multiple discount to apartments, despite PSA's better relative external growth prospects from preferred retirements and acquisitions.
Currently, PSA is up $1.16 or 1.46% and trading at $80.52.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.